1. EIN Working Group 2, Seminar: Sustainable Farming and Food Safety Brussels 19 th June 2003 Sustainable use of land resources – policies and economics Allan Buckwell Chief Economist, CLA

2. Sustainable use of land resources – policies and economics The politico-economic context CAP reform 2003: step not destination Sustainable land use or farming? Sectoral or territorial approach? Agricultural and rural policy for an enlarged Union

3. The politico-economic context EU of 25, and more to come More political Europe, and co- decision on CAP WTO and EBA mean lower barriers to trade Society wants safe food, and cheap food, and quality food, and beautiful countryside

4. CAP reform 2003: step not destination Decoupled payments with cross compliance = big reduction in negative effects of CAP, but … What are the payments for? Their level, distribution and purpose will have to change: link to land. They must be targeted to identified market failures: in environment and rural development.

5. Sustainable land use or farming? Sectoral or territorial approach? Sustainability = economic + social + environmental aspects Farming alone cannot accomplish all 3 European farming structures imply pluriactivity  rural development Environmental tasks require public assistance: AES + N2K These imply switch from sectoral to territorial Rural policy per se cannot do it all

6. Agricultural and rural policy for an enlarged Union: Pillar 1 This will shrink away to deal with: –Productivity and competitiveness –Price and income stability –Food safety, quality, and animal welfare –Rural environment Note, not farm incomes, maintaining farming activity and food security. Sectoral policy but not based on annual compensatory payments

7. Agricultural and rural policy for an enlarged Union: Pillar 2 Diversifying economic activities in rural areas Integrating agricultural and rural policy Approach required: –decentralised, –multi annual, –regionalised –based more on structural funds logic, –single fund, –temporarily reduced co-financing.

8. Future integrated agricultural and rural policy must shift from mostly sectoral to mostly territorial, reversing the present position where rural instruments are the accompanying measures for agricultural policy We have a long way to go to reach this vision